ezto. Delsing Canning Company is considering an of its facilities. Its current income statement is as follows: 6,900,000 3,450,000 Variable s (500% of sales) 880,000 Tax (35%) Earmings after taxes (EAT) Shares of common stock Earnings per share $ 572000 390,000 s 1.47 The company is currently financed with 50 percent debt and 50 percent equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $3.9 million in additional financing. His investment banker has laid out three plans for him to consider 1. Sell $3.9 million of debt at 9 percent 2. Sell $3.9 million of common stock at $25 per share 3 Sell $1.95 million of debt at 8 percent and $1.95 million of common stock at $30 per share. Variable costs are expected to stay at 50 percent of sales, while fixed expenses will increase to $2,490,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates that sales will rise by $1.95 million per year for the next five years. Delsing is interested in a thorough analysis of his expansion plans and methods of financing.He would like you to analyze the following